Perth-based materials technology firm Alexium International has finalised an agreement with Duro Textiles to license its flame retardant fabrics treatment for commercial and military users in North America.
Under the agreement, both companies will work together on the technical and commercial rollout of the technology, establishing manufacturing capacity, and supplying customers over the next 10 months.
The agreement includes an up-front license fee, development cost sharing, machine sales, milestone payments and royalties.
Alexium’s flame retardant technology for synthetic fabrics is based on a charring mechanism that extinguishes the flame while preventing any melting or dripping.
The two companies say there is opportunity in the North American market to supply in excess of 4 million linear yards (3.6 million metres) of nylon.
“We appreciate Duro’s commitment as a commercial partner and appreciate Duro’s ability to make a sizable investment in this technology,” Alexium chief operating officer Stefan Susta said.
“We look forward to a mutually beneficial relationship.”
Mr Susta said the agreement would result in an immediate financial boost for Alexium, while it retains the right to license the technology to other partners in other regions.
“Alexium will push for growth in the next year, it will be an exciting year,” Mr Susta said.
“Specific to those topical FR nylon treatments, Alexium has initiated discussions to establish similar commercial relationships in other global territories.
“While that is our near-term focus, our longer-term strategic objective is to expand our FR treatment into other applications and markets.”
Mr Susta said Alexium was seeking to apply its technology to carpets, synthetic fabric blends and as polymer additives.
At close of trade today, Alexium stocks were up 4.3 per cent, trading at 7.3 cents.